Google’s major revenue comes through its advertising platform-Google Adwords. I am a great fan of Adwords algorithm which has the capability to channelize millions of bucks and popup real-time ads on more than 3.5 billion search queries each day.
Before I move ahead let me add a reminder on what exactly Google Adwords is:-
In short, Adwords is Google paid marketing platform which facilitates advertiser to run ads on Google search and content networks.(now also on Apps). Adwords charges advertisers only if someone clicks on the ads and the model is known as cost per click. (CPC advertising)
Now this sounds exciting as it helps new advertisers and business owners to get traffic directly to their product and services and the console is so use friendly that anyone can launch and set budget for their campaigns. Many advertisers and brands spend millions of dollars each month to get traffic to their website. And apparently this is fun watching and running campaigns on Adwords as it shows results instantly. On the contrary this is something which can’t generate ROI for everyone; let’s see why-
1. Availing for ZMOT (Zero Moment of Truth)
In last few years the journey of customer from viewing an ads to actual transaction has undergone revolution. And according to a study an average customer investigates at-least 11 sources before making any transaction or concluding decision. These sources may be review websites, competitions, forums or blogs. And to make yourself on the SERP again you need consistency and budget; and which is not always possible for small scale advertisers.
2. Click Based Model
Adwords have nothing to do with your website usability and funnel, and it will charge you on the basis of clicks made on your ads. As Google’s responsibility ends when visitor lands on your landing-page and now you will have to work to construct their paths and lead them to meet their objective. (check this for landing page optimization tips for amazing conversions ) And usability is something which requires great expertise and constant testing and Google will not help you on this. And you will be surprised to know that you are the luckiest person on earth if your keywords are costing less than $1/click. And now you can back-calculate your cost for customer acquisition.
4. Brands to compete with
Note that against your $1, their are brands who are bidding aggressively with 400-700% more CPCs. And this can be tough for you to beat their constant cash flows. And also such lower bids and low CTRs will not accrue any clicks and gradually this will lower down your quality score and you will be forced to quit. This is the major hurdle behind small scale advertisers these days and they are bound to search for new advertisement options. Even If you want to test your campaign performance you must not miss Adwords ROI Planning Strategies.
5. Partial Clear funnel
I have talked to many advertisers and what I observed was that they are mostly anxious about the clicks and ranking positions; and they are not even aware of the metrics like conversions, leads, CTRs or sales. Surprising!
And they are mostly the seasonal advertisers who can spend few hundred and thousands of dollars on advertising but don’t care about the website usability, design or visitor experience. And eventually they fall in the category of discontented advertisers and they never came back.
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